To be eligible for an SBA loan guarantee, a business must meet all of the following criteria:

• small enough to fit SBA's criteria
• a type of business acceptable to the SBA

In addition, the business must:

• be for-profit
• be independently owned and operated
• not be dominant in its industry
• have applied for, and been denied, a conventional loan by a private lender

 

If at least two conventional lenders have denied your loan application, you may want to rethink, or rework, your business plans. Try to assess whether the denials are based upon factors that you can realistically overcome if your business gets going or whether adjustments in your plans are necessary.